Search found 1806 matches

by DVMResident
Sat Mar 16, 2024 12:21 pm
Forum: Personal Investments
Topic: 401k Salary Amount Phase Out? - $345k
Replies: 12
Views: 1921

Re: 401k Salary Amount Phase Out? - $345k

I was talking to a financial advisor buddy of mine (not my financial advisor as I don't have one) and he mentioned that when you hit $345k in salary/bonus comp you can no longer contribute to a 401k. That was news to me. I was paid a bonus in February + salary YTD which has me over that threshold and sure enough, was paid today and there was no 401k contribution taken out or company match. This was the first I'd ever heard of this as I thought I have made over that amount before and never noticed 401k not being pulled out. I thought you were entitled to the full $23,000 401k contribution limit regardless, and I thought the company would match all the way up to that contribution amount. My company matches 5%. Can anyone shed some light on t...
by DVMResident
Thu Feb 22, 2024 12:20 pm
Forum: Personal Investments
Topic: 401k fund choices (make sure you're sitting down)
Replies: 32
Views: 2834

Re: 401k fund choices (make sure you're sitting down)

While these fees are not great, the tax savings should still come out in your favor. I would get the match -> fill up other save advantaged accounts (including IRAs as available) -> then fill up the rest of this 401(k).

I agree with the suggestions to use this for your fix income allocations/bonds and use other accounts for stocks.

I’ve seen worst 401(k)/403(b) fees. Luckily, you don’t have any fixed fees like a 12-b that really make you question the value of these accounts. These fees will only hurt while your wife is employed and will cease when you can remove your funds via rollover, etc.
by DVMResident
Mon Feb 05, 2024 9:34 am
Forum: Personal Finance (Not Investing)
Topic: DW Laid Off, I'm Panicking
Replies: 166
Views: 20736

Re: DW Laid Off, I'm Panicking

Mortgage & Property Tax $5,000 Utilities $700 (only using heat & AC for 4-5 hrs as needed - rates have skyrocketed) Internet/Mobile $350 Insurance $800 (home and auto) Kids Classes & Activities $1,400 (club sports, classes) Groceries $1,200 Vacation $1,300 Donations $300 Home Maintenance $500 (older home that we're finally repairing/updating) Eating Out $400 (about 1x/week at local mom & pops) Support for Elderly Parents $600 Medical Expenses $500 (maybe this could fade away when everyone's healthy) Misc/Clothing $150 (birthday parties/gifts, school/sports events) Gasoline $400 (have to go into office) Total Monthly $13,600 OP, if you came with the question “can I retire right now early with these numbers?” The conservative...
by DVMResident
Mon Feb 05, 2024 8:43 am
Forum: Personal Finance (Not Investing)
Topic: DW Laid Off, I'm Panicking
Replies: 166
Views: 20736

Re: DW Laid Off, I'm Panicking

Mortgage & Property Tax $5,000 Utilities $700 (only using heat & AC for 4-5 hrs as needed - rates have skyrocketed) Internet/Mobile $350 Insurance $800 (home and auto) Kids Classes & Activities $1,400 (club sports, classes) Groceries $1,200 Vacation $1,300 Donations $300 Home Maintenance $500 (older home that we're finally repairing/updating) Eating Out $400 (about 1x/week at local mom & pops) Support for Elderly Parents $600 Medical Expenses $500 (maybe this could fade away when everyone's healthy) Misc/Clothing $150 (birthday parties/gifts, school/sports events) Gasoline $400 (have to go into office) Total Monthly $13,600 OP, if you came with the question “can I retire right now early with these numbers?” The conservative...
by DVMResident
Wed Jan 17, 2024 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Move or fix up the house?
Replies: 8
Views: 1010

Re: Move or fix up the house?

With $8M NW and income that high, do whatever you want. This repair is <10% of your gross income this year. I think the more important question is do you like this house?

From a money perspective, the repair costs less than the transaction costs of changing houses not to mention the lower mortgage interest.
by DVMResident
Mon Jan 15, 2024 9:36 am
Forum: Personal Finance (Not Investing)
Topic: 10 year old wants to sit with me when I do taxes . Should I let him?
Replies: 98
Views: 16125

Re: 10 year old wants to sit with me when I do taxes . Should I let him?

Have you considered doing a dummy return with hypothetical numbers? Could be fun.
by DVMResident
Wed Jan 10, 2024 9:52 pm
Forum: Personal Investments
Topic: Real estate as % of net worth?
Replies: 53
Views: 6414

Re: Real estate as % of net worth?

I’m not sure there is a “correct” target %. I, like most here I imagine, purchased the house that I can afford and fits my family’s needs and wants. RE is a consumption item, not an investment.

I do count equity (minus transaction costs) in my NW. I also model the sale/downsize when I’m in my mid-80s as a lump sum. In that sense, it does play a role in my overall planning. When the RE is paid off and I have my FI number, RE will be about ~30% of my NW (excluding SS). This is not intentional.

That’s for my primary residence. Rentals and investment RE is a whole other discussion.
by DVMResident
Fri Jan 05, 2024 10:58 am
Forum: Investing - Theory, News & General
Topic: How did you make your first $1M?
Replies: 148
Views: 33618

Re: How did you make your first $1M?

Stayed in school until grade 26…

While in school, lived with family to save rent :moneybag, enrolled in clinical trials :moneybag, moonlight a little :moneybag, and played the credit card churn game :moneybag —> Purchased a multi unit and “house hacked”

After school, I got jobs in corporate America and used their relo packages to churn RE three times. Cheap leverage, a decade long housing bull market, and no transactional costs = got me half way there.

The rest, and the rest going forward, came from saving 35-40% of my W-2. Boring.
by DVMResident
Tue Dec 26, 2023 10:06 am
Forum: Personal Investments
Topic: 401k strategy switching employers
Replies: 25
Views: 2393

Re: 401k strategy switching employers

Since you’re switching pretty much at the new year, it’s pretty simple.

Max out employer #1’s 2024 match as much as possible (sounds minimal because of the timing).

Then contribute to employer #2. The combined limit of both 401(k)s is $23k for 2024. The 401(k) won’t stop you and you’ll need to keep track of this yourself (or run into painful corrective paperwork later if you exceed the limit).

That’s probably all you need to think about. If a megabackdoor Roth IRA is also under consideration, let’s continue the discussion.
by DVMResident
Tue Dec 19, 2023 1:50 pm
Forum: Personal Investments
Topic: First RSU Vest - What Would You Do?
Replies: 23
Views: 2400

Re: First RSU Vest - What Would You Do?

Mattman25 wrote: Tue Dec 19, 2023 1:07 pm
crefwatch wrote: Tue Dec 19, 2023 7:46 am I realize that most companies no longer display "loyalty" to their employees. But when they did, it was sometimes "expected" to have some stake in the company. If you plan to stay, or want to be a Vice President, you might make a non-Boglehead choice.
You do not seem to be counting the even larger pile of UNvested awards the OP probably has. It is likely 3-5x the size of RSU's he is selling this year, depending on the vesting time frame.
Best to sell and then tell nobody at work, but still keep up on the stock price like it’s important to you personally.
by DVMResident
Sat Dec 16, 2023 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Deferred Compensation | 37% Bracket | 4 Years to Retirement
Replies: 22
Views: 3087

Re: Deferred Compensation | 37% Bracket | 4 Years to Retirement

These plans are highly variable and IMO are difficult to generalize for. I recommend a review by a tax attorney before contributing large amounts. The review will cost maybe $400. If you’re in CA, PM for a recommendation (I’m the further thing from a lawyer). Critically, does the program have a change control prevision for the distribution? If yes, a merger or similar activity can trigger any early distribution and I would use the DCP sparingly. Second, look at the distribution options and understand how that will impact your future taxes on distribution. My plan does not have a change control feature and has a max distribution over 10 years. I personally plan to do 10 year distributions with a target value of 80% of the top of the 12% fede...
by DVMResident
Wed Nov 15, 2023 5:49 pm
Forum: Personal Investments
Topic: At what mortgage rate would you pay it off early?
Replies: 258
Views: 22504

Re: At what mortgage rate would you pay it off early?

About +1% net taxes over 10yr T-notes. I’m willing to pay a small interest for additional liquidity.
by DVMResident
Sun Nov 05, 2023 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Recast mortgage or put money elsewhere?
Replies: 31
Views: 4218

Re: Recast mortgage or put money elsewhere?

>>>>>> Critically, the TJCA standard deduction is roughly set to be cut in half and the SALT caps will be lifted at the end of 2025. <<<<<< Maybe you can cite sources this as a fact for me? You seem very sure. I understand the expiration but not your confidence of this outcome. Sure: https://www.comerica.com/insights/personal-finance/tax_cuts_and_jobs_act_expiring_tax_provisions.html . TJCA includes these timelines and this is the current law. Deviation from current law would require an act of congress - discussion of which is (#1) would be speculative and (#2) potentially run afoul of forum rule 4. There are a number of provisions, but these two are most relevant to the itemized vs standard deduction discussions: State and Local Tax (SALT...
by DVMResident
Sat Nov 04, 2023 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred Comp vs ARM Mortgage Payoff
Replies: 12
Views: 1535

Re: Deferred Comp vs ARM Mortgage Payoff

Since you itemize, the post-tax mortgage rate starting in July 2024 is 3.33%. Your DCP is a tax delay from a marginal rate of 35% now to a future rate of...17%?...makes the effective yield on total bond fund more than the adjusted mortgage. We'll have to see what happens in 2025. From a purely rate/tax preservative, DCP makes sense over the mortgage in 2024. The larger question should be "what is the role of the DCP in your overall plan?" Reasonable minds can differ here. I'll share my approach as an example because we're in similar circumstances. My DCP plan distributes over 10 years post-separation. I am aiming for my DCP annual distributions to be 80% of the top of the 12% bracket because trading one high margin for another is ...
by DVMResident
Thu Nov 02, 2023 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Deferred Comp vs ARM Mortgage Payoff
Replies: 12
Views: 1535

Re: Deferred Comp vs ARM Mortgage Payoff

Lets say your company doesn't ever go bankrupt, which could completely lose your deferred comp money. We'll say you don't view that as a risk even though it can happen. What is the risk that the company merges or buys out another company? Just take a look at Exxon/Pioneer and Chevron/Hess recently. That can trigger a 100% payout of your deferred comp plan, even if you don't want it to. It all depends on the specific terms of the company merger/acquisition. You are certainly right, a merger or acquisition can potentially trigger a payout. It’s not a certainty, as you mention, but a possibility. I would argue that non-qualified deferred comp plans are generally established by and used by the Sr Executives of a company. Our course it extends ...
by DVMResident
Wed Nov 01, 2023 8:51 pm
Forum: Personal Investments
Topic: Any love for EE bonds @2.7%?
Replies: 16
Views: 2450

Re: Any love for EE bonds @2.7%?

I’d prefer iBonds with a fixed 1.3% + variable these days.
by DVMResident
Sun Oct 29, 2023 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Recast mortgage or put money elsewhere?
Replies: 31
Views: 4218

Re: Recast mortgage or put money elsewhere?

I'm in the "put money elsewhere" camp. Your $785k mortgage is almost entirely deductible now and will be fully in coming years. Critically, the TJCA standard deduction is roughly set to be cut in half and the SALT caps will be lifted at the end of 2025. Post-tax, this mortgage rate is 4.X% and it carries you over the threshold for other itemization. I'd vote for keeping the liquidity in tax efficient assets to offset the mortgage interest: T-notes ladder +/- iBonds +/- munis. You will lose some on the interest spread in the short-term, but lowering liquidity risk (not that's huge for you) and you enter a win-win on interest rates (they go up = keep renewing your bond ladder; they go down = refi or paydown mortgage). --- However, i...
by DVMResident
Sun Oct 15, 2023 2:06 pm
Forum: Personal Investments
Topic: Anyone adjusting asset allocation given shrinking equity premium?
Replies: 49
Views: 7237

Re: Anyone adjusting asset allocation given shrinking equity premium?

My AA of my investments accounts haven’t change. Like a good BH, I would like to answer ‘no’…but…

My debt pay down approach is shifting towards a liability matching funds (mortgage) with fixed assets to collect some interest arbitrage plus some tax plays. This is just mental accounting and the technical answer … yes, I am changing my AA in response to interest rates.
by DVMResident
Wed Sep 20, 2023 11:39 pm
Forum: Personal Finance (Not Investing)
Topic: How are you self-insuring for long-term care?
Replies: 167
Views: 21746

Re: How are you self-insuring for long-term care?

Increase my burn rate beyond 4% plus or minus sell my primary residency. If that’s exhausted, then it’s Medicaid.

Run throughs couple simulations on FIRECalc. With a nest eggs of $2.5m plus a house worth $1m mortgage-free (which is probably not that unusual for this board members), long term care for even 10 years is doable.
by DVMResident
Mon Sep 18, 2023 7:35 pm
Forum: Personal Investments
Topic: HSA and Living in California :(
Replies: 38
Views: 6870

Re: HSA and Living in California :(

Just use the HSA for a portion of your bond allocation to avoid state taxes: munis and t-notes.

It’s not a big deal, but the HSA in CA is less attractive than other states.
by DVMResident
Mon Sep 11, 2023 9:19 am
Forum: Personal Consumer Issues
Topic: Generator to back up Sump Pump
Replies: 40
Views: 3325

Re: Generator to back up Sump Pump

FWIW we installed a bernoulli pump above the sub pump (in the same well). The advantage is it does not require electricity; both power and water would have to be out to for the combined system to fail.
by DVMResident
Mon Aug 21, 2023 12:40 pm
Forum: Personal Investments
Topic: Give me the quick run down
Replies: 15
Views: 1503

Re: Give me the quick run down

You’re in decent shape. About 1x income saved and limited debt is better than most - it’s a little behind based on income:NW but you just started making this much. Your goal is very realistic for a normal retirement age . The challenge is to convert your new six-figure salary to wealth. Couple thoughts: -I agree and second the comment term life insurance and probably worth considering beyond the employer provided options -I would bump that savings rate up to to 20%, split between HSA first then 401(k) and ER fund; after ER fund is at 6 months of living expenses, switch to fully fund your 401(k) -Define objectives and track spending; it can’t be “everything is important”, you have to prioritize -Consider having a family discussion about the ...
by DVMResident
Fri Aug 04, 2023 1:48 pm
Forum: Personal Investments
Topic: What is your total accumulation number, how did you come to it. No Judgements!
Replies: 404
Views: 73706

Re: What is your total accumulation number, how did you come to it. No Judgements!

Our number is $2.5m plus a paid off mortgage (or equivalent sinking fund depending on interest rates and tax/ACA rules). I’ve been tracking spending and targeting a 3.75% SWR. This includes spiky costs like house repairs and cars. It was fairly easy to get the net target from there. It took a while to stabilize our costs with kid, house, etc and finally am feeling good about expense projections. Then the hard part. I have to make estimates on future tax rates for our taxable and tax deferred account. I have a high, mid, and low scenarios for tax liabilities. I’m making no predictions - just a modeling exercise to understand the impact of taxes on my number. Then I add in separate bond-tent to bridge to SS at 75% of current formulas. All tha...
by DVMResident
Mon Jul 31, 2023 7:18 pm
Forum: Personal Investments
Topic: At which projected tax bracket delta does traditional 401k stop making sense
Replies: 13
Views: 1614

Re: At which projected tax bracket delta does traditional 401k stop making sense

Only use Roth if you’re in the <12% bracket, you expect your salary to increase greatly later (e.g. doctors in residency), or you have to.

You should have lots of opportunities to convert to Roth before the RMDs hit: e.g. layoffs, pre-SS retirement, etc.

If you never have an opportunity to convert at a low rate, count yourself lucky and pay up or donate to charity.
by DVMResident
Wed Jun 28, 2023 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to take a 35% paycut?
Replies: 19
Views: 2734

Re: Am I crazy to take a 35% payout?

How’s the severance in your current role, if any?
by DVMResident
Wed Jun 14, 2023 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Millionaire by 40 and How you Did it?
Replies: 352
Views: 74787

Re: Millionaire by 40 and How you Did it?

Lived near rent-free with a 1.5hr commute by bus for 3 years while a resident. Saved >80% of income plus a lot of credit churning. Used those savings to buy a primary residency/2-unit turned rental 10% down plus some heavy sweat equity. Rode the post-great recession RE boom up and cashed out.

About half my NW is from that heavily leveraged RE.
I’m out of the RE investing world now so I can focus on my career (but could have easily could been a full time landlord).

The other half came from just saving 25-30% income of my post-residency jobs plus employer benefits: all bonuses, match 9-10%, ESPP, etc. I aimed to be tax efficient as taught on this board: 401(k), Roth IRA, mega-back door Roth IRA, DCP, etc.
by DVMResident
Sun Jun 04, 2023 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Another Job Offer Posting
Replies: 9
Views: 1158

Re: Another Job Offer Posting

Two other things to consider:

-What does the extra ~$36k plus LTI mean to you?

I once had a job offer that sounded awful for an eye popping + $75k/yr. I was attempted. A spreadsheet later, I realized it just move my FIRE date closer by 8 months. Not worth it.

-What is the chance you could get another (remote) if the second one doesn’t pan out?

-What do you want from your career?
by DVMResident
Mon May 29, 2023 4:35 pm
Forum: Personal Investments
Topic: Should you fill up tax deferred space before taxable?
Replies: 28
Views: 3783

Re: Should you fill up tax deferred space before taxable?

Ask your HR if the 401(k) provides a “true up” on the match. If yes, front load followed by taxables. A lot is made of the true-up here.... Keep in mind that you still must be employed for that to happen. Last layoff I missed a chunk of match because I front-loaded and did not make it to the true-up date early the following year. And? If the OP still employed at the end of the year (which is most likely) = you got the match. If you’re not = you wouldn’t have gotten the match anyways. Now, you have the annual maxed 401(k), which is the position BH’s generally want to be in (provided the OP has liquidity/ER fund to survive a layoff). Someone that front loads, reaches the max, and is then laid off mid year would be prevented from receiving ad...
by DVMResident
Mon May 29, 2023 9:14 am
Forum: Personal Investments
Topic: Should you fill up tax deferred space before taxable?
Replies: 28
Views: 3783

Re: Should you fill up tax deferred space before taxable?

rob wrote: Sun May 28, 2023 9:43 pm
DVMResident wrote: Sat May 27, 2023 8:21 pm Ask your HR if the 401(k) provides a “true up” on the match. If yes, front load followed by taxables.
A lot is made of the true-up here.... Keep in mind that you still must be employed for that to happen. Last layoff I missed a chunk of match because I front-loaded and did not make it to the true-up date early the following year.
And? If the OP still employed at the end of the year (which is most likely) = you got the match.

If you’re not = you wouldn’t have gotten the match anyways. Now, you have the annual maxed 401(k), which is the position BH’s generally want to be in (provided the OP has liquidity/ER fund to survive a layoff).
by DVMResident
Sat May 27, 2023 8:21 pm
Forum: Personal Investments
Topic: Should you fill up tax deferred space before taxable?
Replies: 28
Views: 3783

Re: Should you fill up tax deferred space before taxable?

Ask your HR if the 401(k) provides a “true up” on the match. If yes, front load followed by taxables. If not, spread the contributions over the year.
by DVMResident
Sun May 21, 2023 10:45 am
Forum: Personal Consumer Issues
Topic: Are there any benefits of 0% credit cards?
Replies: 33
Views: 3363

Re: Are there any benefits of 0% credit cards?

I’ve played around them building CD ladders for a targeted payoff. I tend to find sign-on bonuses better. For example, chase has a spend $4k on 3mo, $800 sign on plus 1-3% cash rewards now. The 0% offers can’t beat that. These days, with banks paying 5%, the math has shifted some and carrying a balance can be just as if not more lucrative than the bonuses. This is a relatively recent development due to bank rates having gone up a fair bit over the past several months. Here’s an example. I recently opened a U.S. Bank Triple Cash Rewards credit card. It came with a $500 bonus for spending $4,500. There is no annual fee and the card earns 3% at restaurants, gas stations, and office supply stores. The card also came with 0% interest for 18 mon...
by DVMResident
Fri May 19, 2023 7:09 pm
Forum: Personal Consumer Issues
Topic: Are there any benefits of 0% credit cards?
Replies: 33
Views: 3363

Re: Are there any benefits of 0% credit cards?

I’ve played around them building CD ladders for a targeted payoff. I tend to find sign-on bonuses better. For example, chase has a spend $4k on 3mo, $800 sign on plus 1-3% cash rewards now. The 0% offers can’t beat that.
by DVMResident
Wed Apr 19, 2023 9:09 am
Forum: Personal Investments
Topic: Alternatives to Fidelity
Replies: 11
Views: 1349

Re: Alternatives to Fidelity

Just buy Vanguard funds/ETFs at Fidelity?
by DVMResident
Mon Mar 27, 2023 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Millennials: do you prefer debit to credit? if so, why?
Replies: 178
Views: 13002

Re: Millennials: do you prefer debit to credit? if so, why?

Older millennial here and I use credit cards.

The biggest reason is fraud protection and the occasional dispute, which seems to warranted once every year or two. I do play a bit of the churn game and the points are a perk (understanding the fees are indirectly baked into prices).

I really don’t see any upside to debited other than maybe behavioral constraints.
by DVMResident
Sun Mar 26, 2023 12:37 am
Forum: Personal Finance (Not Investing)
Topic: New Rules for MegaBack Door?
Replies: 20
Views: 2580

Re: New Rules for MegaBack Door?

bslice wrote: Sat Mar 25, 2023 4:37 pm
Dottie57 wrote: Sat Mar 25, 2023 3:52 pm
MrJedi wrote: Sat Mar 25, 2023 3:19 pm This is plan specific. My plan has always allowed for after tax contributions without maxing the pretax/Roth deferrals first. There is no law saying you must max that first.
My plan too allowed both types at same time
But Why? Why would you contribute to the non-deductible bucket when you havent maxed out the Traditional 401k/Roth 401k annual max of 22.5k?
Change of employers
by DVMResident
Mon Mar 06, 2023 8:27 am
Forum: Personal Finance (Not Investing)
Topic: How to convince a partner to ‘stay put’
Replies: 32
Views: 3935

Re: How to convince a partner to ‘stay put’

Meet in the middle.

Ask her for the downpayment and to split the prospective higher PITI by weighted income. Your’ll offer the equity (sans fees) in the property you own and will be paid off in 2 years. Those proceeds will probably 2.X the amount she would bring, resulting in a smaller mortgage.

That is 100% reasonable for DINK. She only saved $50k at the age of 45 with a $300k gross income (yes, we all understand CA taxes). Given her spending rates, that’ll take some years and adjust household spending/cap lifestyle creep to account for the increased costs.
by DVMResident
Wed Mar 01, 2023 10:17 pm
Forum: Personal Investments
Topic: Vesting of RSUs
Replies: 11
Views: 1214

Re: Vesting of RSUs

I agree with everyone: sell the RSU as they vest.

Offsetting your taxes with 457 can certainly make sense. It might be difficult to dial in an exact dollar-for-dollar offset as the stock price will bounce around but you can ballpark it. Have you decided on the best use? If the funds are earmarked for retirement, it’s perfectly reasonable to put them in a low-fee 457.

On a minor technical note, the withholdings on RSU have specific rules that are higher than normal rates but are taxed as income. This is a common point of confusion. Your approach to offset vesting with a 457 probably won’t make you whole until you file for a refund the following year.
by DVMResident
Thu Feb 23, 2023 9:05 am
Forum: Personal Finance (Not Investing)
Topic: High income but house poor in Bay Area, can we afford spouse's switch to her dream career?
Replies: 159
Views: 19553

Re: High income but house poor in Bay Area, can we afford spouse's switch to her dream career?

I haven’t seen this point discussed: can you wife work both jobs?

This will hedge against the layoff risk (which may happen anyways…and there’s a possibility of severance that you don’t want to pass on), that she my not like the academic position, and further padding your cash cushion saving the third (smaller) income.

Maybe just for a year.
by DVMResident
Sun Feb 19, 2023 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Real estate gurus: is the 1% rule realistic?
Replies: 58
Views: 7915

Re: Real estate gurus: is the 1% rule realistic?

The USA RE market hasn’t had good rentals on a fundamental rent:price metric for 15+ years. The RE market has been juiced by rapid appreciation, cheap leverage, short-term rental model (AirBnB), and short supply.

YMMV.
by DVMResident
Wed Feb 15, 2023 6:13 pm
Forum: Personal Investments
Topic: Reducing Taxable Income even further
Replies: 34
Views: 4046

Re: Reducing Taxable Income even further

We’re in a similar bracket in CA and there aren’t that many places to hide.

Deferred comp plan if your employer provides the option can be very useful and not typically covered in most BH discussions. These plans usually become available around the ~director level (in my field). My DCP can defer six-figures at your income level and I found them useful to offset the lumpy income with higher withholding rates (bonuses and RSUs). They have both huge pros and cons. Read your plan documents and see if it’s available either now or in the next promotion. If yes, circle back and we can discuss that option.

On the bonds side, iBonds and t-notes are also tempting in CA.

After that, taxable accounts investing and paying down debt.
by DVMResident
Sun Feb 12, 2023 9:24 am
Forum: Personal Investments
Topic: BOA delays into Fidelity
Replies: 18
Views: 1195

Re: BOA delays into Fidelity

Skip BofA? Fidelity CMA accepts direct deposits.
by DVMResident
Wed Feb 08, 2023 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding ARM Risk?
Replies: 19
Views: 1371

Re: Understanding ARM Risk?

OP, do you have a real options or this just a hypothetical thought exercise?

There are plenty of ARM threads that hash out the pros and cons.
by DVMResident
Wed Feb 08, 2023 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding ARM Risk?
Replies: 19
Views: 1371

Re: Understanding ARM Risk?

OP, do you have a real options or this just a hypothetical thought exercise?

There are plenty of ARM threads that hash out the pros and cons.
by DVMResident
Sun Feb 05, 2023 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Am I optimizing my deferred compensation?
Replies: 7
Views: 1195

Re: Am I optimizing my deferred compensation?

PowderDay9 wrote: ↑ How does your company define "retirement"? Separation at age 55 or older DVMResident wrote: ↑ This is unusual to have this be the only option when the balance is high. Interesting. The plan documents are very clear the lump sum is the only option if under 55. My guess is this is a (relatively weak) type of golden handcuffs meant to keep executives from jumping ship but combines with a RSU forfeiture to be pretty significant. It looks like the lump sum comes in the calendar year following separation, so there is some time to plan. However, I'm not really projecting huge balances so think I can avoid a tax bomb in any event. That’s a bummer. For any reason, including layoff, really means this distribution is not...
by DVMResident
Sat Feb 04, 2023 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: Am I optimizing my deferred compensation?
Replies: 7
Views: 1195

Re: Am I optimizing my deferred compensation?

This IMO is a no brainer to get the company match. You are being compensated well for the risk. If I leave the company for any reason prior to retirement, the entire balance is paid to me as a lump sum, creating a potentially large tax bill This is unusual to have this be the only option when the balance is high. At the 3 mega-corps I’ve been at, if the the balance reaches >$100k, you have the option do annual installments up to 10 years. If the balance is relatively low, the tax hit will more than covered by the match. On the upside of this, a layoff will trigger a distribution as well. DCPs are great layoff funds/self-insurance. Moreover, I’ve been able to “bridge” DCP from employer to employer by offsetting distribution from prior employ...
by DVMResident
Sat Feb 04, 2023 3:31 pm
Forum: Investing - Theory, News & General
Topic: investing in a show horse
Replies: 61
Views: 5421

Re: investing in a show horse

As the saying goes…

There are lots of ways to make money in horses. None of them involve owning the horse.
by DVMResident
Mon Jan 30, 2023 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: [How] much is your credit score worth to you?
Replies: 27
Views: 2225

[How] much is your credit score worth to you?

0% credit cards teaser periods are widely available if your credit score is high. It's increasingly tempting to setup a sink fund using various fixed income vehicles (CD, T-notes, MM, etc are paying pre-tax ~4.X%), payoff the card before interest starts, and pocket the interest. This strategy is quite old, but had fallen out of favor in a low interest environment.

However, cranking your credit utilization will cause a credit score hit.

This begs the question how much is your credit score worth to you?

[Title clarified - moderator ClaycordJCA]
by DVMResident
Mon Jan 30, 2023 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: How much do you keep in checking?
Replies: 309
Views: 30126

Re: How much do you keep in checking?

$10k at a big bank. They given me a couple free wires over the years.

I really should switch to Fidelity CMA. It’s pure laziness and linked account that need to be untangled That keep that much there.
by DVMResident
Wed Jan 25, 2023 11:14 pm
Forum: Personal Consumer Issues
Topic: Summer/Fall home on Boston commuter line
Replies: 37
Views: 4183

Re: Summer/Fall home on Boston commuter line

Hingham has a MBTA-subcontracted ferry into Rowe’s wharf or Long wharf. Once you hit Rowe’s wharf, you next to south station to the red line and the silver line into the airport or just stick around seaport/little Italy. The town is small, has condos (better they take care of it if you’re not there in the winter), and coastal with lots of kayaking/boats options. You could even get your own dock. :beer
by DVMResident
Sat Jan 21, 2023 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Do I take the new job?
Replies: 22
Views: 1959

Re: Do I take the new job?

am about to have our third kid at the end of the year.
What’s the mat leave? Often they have a minimum tenure, like 1 year, to qualify.